Traditional media devices are distributed in a usable state to merchants and consumers. Such devices include a typical USB flash drive and camera memory stick before it is packaged and sent to merchants.
A primary benefit of many removable media devices is their diminutive size, as many of them are designed to be portable or to fit into a small compartment of an already small device such as a mobile phone or camera. However, the small size of such devices makes them relatively more vulnerable to theft. A thief who steals the USB flash drive from a merchant may use the USB flash drive to its full potential. The same is true for camera memory cards and other removable media. Because these devices are typically very expensive, there is a large potential for merchant loss.
Various methods have been employed to counteract theft. For instance, in the case of easily-stolen software products such as a Windows XP™ disc, the software may be distributed in a “locked” or “partially locked” condition. The software is not completely usable on a user's computer until the user accesses a central site. By accessing the central site, the user may obtain a password or a final piece of software code that will “unlock” the installed software. It should be noted that in this method, the media carrying the software is never locked. Thus, a plurality of different users could read the exact same ones and zeros encoded on the CD or DVD that carries the software. However, the central site ensures that only one user (or a limited number of users) may activate the software. In such prior art systems, it is the installed software on the user's computer—and not the software medium purchased by the user—that changes. Thus, for example, if a disc contains an operating system software that will expire 30 days after installation, a skilled user might theoretically re-install the software every thirty days and also pass the medium around to others who may achieve the same result.